HITC Sport understands Brighton & Hove Albion have won the race for the Stoke City midfielder.
Sidwell's future at Stoke has been the subject of speculation in recent weeks with the midfielder well down the pecking order at the Britannia Stadium.
The 33-year-old has made just four appearances for Stoke this season and has not featured since August in the Premier League.
The former Reading and Chelsea midfielder is out of contract at Stoke at the end of the season and the club have decided to let him go out on loan as he is not currently in Mark Hughes' plans.
Speculation over Sidwell's future intensified over the weekend after he was spotted at the Amex Stadium over the weekend to watch Brighton's 2-1 win over Huddersfield Town with the club later suggesting he was there as a guest of Bobby Zamora.
However, Brighton have now moved quickly to tie up a deal for Sidwell to fend off interest from a number of Championship rivals.
Sidwell's former club Fulham were also hoping to bring the midfielder back to Craven Cottage, but Brighton have beaten them to the player's signature